A newly established nonprofit, the Alabama Rural Hospital Foundation, aims to improve healthcare access and economic stability in rural areas by leveraging collective expertise and funding strategies. The organization was officially announced with a leadership team committed to ensuring long-term sustainability for underserved medical facilities.
Jamie Troutman, president of the foundation’s board and head of the Economic Development Association of Alabama, stated that more than half a dozen rural hospitals in the state have already closed due to financial strain. Of the 52 still operating, about half face significant risks, with 20 on the brink of shutting down. “Healthcare availability directly impacts both physical well-being and regional economic strength,” Troutman explained. The foundation’s mission is to address both dimensions to enhance quality of life.
To support its goals, the foundation will utilize the Rural Hospital Investment Program, established through House Bill 86 by Representative Terri Collins. This initiative offers dollar-for-dollar tax credits to individuals and businesses that contribute to rural hospitals. The annual cap starts at $20 million in 2026, rising to $25 million in 2027 and $30 million thereafter. Local communities must provide a 10% matching contribution.
Collins expressed optimism about the convergence of state and federal efforts. “We’re seeing momentum across multiple fronts—tax incentives, federal funding, and private foundations—all working alongside local stakeholders to expand healthcare access,” she said.
Additionally, the federal Rural Health Transformation Program allocates $50 billion nationwide to counter Medicaid cuts included in recent legislation. Alabama officials aim to secure a portion of these funds to attract healthcare providers to rural regions and bolster maternal, primary, and emergency care services.
A task force appointed by Governor Kay Ivey is currently evaluating spending priorities. If Alabama submits a qualifying application by November 5, it will receive at least $500 million, disbursed evenly over five years starting in 2026. The Centers for Medicare and Medicaid Services will distribute the remaining funds based on criteria such as rural population size and proposed policy frameworks.
The foundation’s formation reflects a broader strategy to integrate healthcare resilience with economic development, recognizing that hospital closures can destabilize entire communities.
— news from The Alabama Baptist
— News Original —
Rural hospital foundation seeks to increase health care access, economic health
A new, private non-profit group is hoping to use members’ collective expertise to find funding and sustainability for Alabama’s rural hospitals. The Alabama Rural Hospital Foundation and its members have been announced. n nFor more stories at your doorstep, subscribe to The Baptist Paper. n nSIGN UP for our weekly Highlights emails n n“More than a half-dozen rural hospitals in Alabama have been forced to close as a result of funding issues, and out of the 52 remaining, roughly half are considered to be at risk of closure, with 20 of them on the verge of shutting their doors any day,” Jamie Troutman, the foundation board’s president, said in a written statement. n nTroutman, from Cullman, is also president of the Economic Development Association of Alabama. n n“Access to health care affects the physical health of Alabamians in rural areas, but it also determines the economic health of the places they live, and our foundation’s goal is to improve both of those vital quality-of-life factors.” n nTax incentive n nThe new foundation plans to use a newly created tax incentive to help meet its goals. n nThe Rural Hospital Investment Program, created through Rep. Terri Collins’ House Bill 86, created a dollar-for-dollar tax incentive program for individuals and businesses that donate money to rural hospitals. It has an annual statewide cap of $20 million for 2026, $25 million for 2027 and $30 million for 2028 and beyond. It requires a 10% match from local communities. n n“I am pleased that support for rural healthcare is happening in so many different areas,” Collins, R-Decatur, told Alabama Daily News on Wednesday. “The tax incentives, the federal funding, the foundation all working together with local communities and businesses to help increase availability and access for healthcare. I believe these partnerships will truly make a difference for Alabama.” n nThe federal Rural Health Transformation Program is a $50 billion fund for states to tap into as part of the Republican tax and spending law, intended to offset significant cuts to Medicaid approved in the same legislation earlier this year. Alabama leaders hope to direct some of the funds to incentivize providers to serve in rural areas and to support labor and delivery services and primary care. n nSpending priorities n nA group of health and legislative leaders appointed by Gov. Kay Ivey is currently discussing spending priorities. n nIf Alabama submits an approved application by the Nov. 5 deadline, it will receive at least $500 million distributed equally over five years beginning in 2026. The Centers for Medicare and Medicaid Services will allocate the other half of the $50 billion fund based on certain criteria, such as the state’s rural health population and its proposed policies in the application. n nFull story.